FS Credit Real Estate Income Trust enters $200 million loan facility

By Marisa Wong

Los Angeles, Sept. 24 – FS Credit Real Estate Income Trust, Inc. subsidiaries FS CREIT Finance MM-1 LLC and FS CREIT Finance Holdings LLC entered into a loan agreement on Sept. 20 with Wells Fargo Bank, NA as administrative agent and Massachusetts Mutual Life Insurance Co. as facility servicer, according to an 8-K filing with the Securities and Exchange Commission.

The loan facility has a committed amount of $200 million with an option to increase to $250 million in the first 18 months and has a three-year availability period extendable for one additional year for an additional fee of 25 basis points and an eight-year final maturity.

Outstanding loans bear interest at one-month Libor plus a spread of 210 bps.

Starting 18 months after the closing date, the full interest rate on outstanding loans will be payable on 85% of the commitments, regardless of usage.

The facility also has an unused commitment fee of 30 bps payable on, during the first 18 months after the closing date, the unused commitment amounts and, thereafter, the unused commitment amounts in excess of the 85% minimum usage amount.

The facility is subject to payment of a make-whole amount upon voluntary termination or reduction of the commitments.

The loan does not include financial covenants other than a maximum loan to value test that starts at 85% and is subject to scheduled reductions. If that test is not met, cash from the loan assets is trapped and used to repay principal until the test is again met, with no additional borrowings available until the test is again met.

The secured loan will be used to finance the acquisition and origination of commercial mortgage loan assets meeting specified eligibility criteria and concentration limits, pay transaction costs and fund distributions to FS CREIT Finance Holdings and ultimately to FS Credit Real Estate Income Trust.

The Philadelphia-based company acquires and manages a portfolio of senior loans secured by commercial real estate.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.